Часто задаваемые вопросы | ТОО «Расчетно-финансовый центр по поддержке возобновляемых источников энергии»
FAQ
According the technical conditions participant is allowed to participate in auction even he has formalized land plot and electric grid connection point. Advantage of participant who has land plot and connection point will not be taken into account. According to subparagraph 3) of paragraph 18 of Auction Rules, Auctioneer provides participants with equal conditions for access to auction. Selection of renewable energy projects is carried out at the lowest price.
According to the information provided by the energy transmission organizations, free connection points are included in the auction schedule. At the same time, in accordance with paragraph 6 of the Auction Rules, the points of connection to the electric grid submitted by energy transmission organizations to the authorized body are reserved for planned RES objects until the winner of the auction concludes an agreement on connecting of RES object and (or) the issuance of technical conditions for connection to the electric grid.
Based on the auction results, the winners apply to the local executive body of the oblasts (districts) that have reserved the land plot and execute it in accordance with the Land Code of the Republic of Kazakhstan, it requires the passage of all procedures stipulated by the legislation of the Republic of Kazakhstan.
Based on the results of the auction, the winners apply to the local executive body of the regions (districts) that have reserved the land plot and execute it in accordance with the Land Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan "On state registration of non-immovable property rights"
Financial security is provided in tenge, the procedure for obtaining financial security is worked out with the Banks in the process of negotiations between the Banks and clients independently.
The current Auction Rules imply the provision of financial security in the form of bank guarantees or a standby letter of credit. The first auction will be conducted using the tools provided by the Auction Rules.
In accordance with subparagraph 2) of paragraph 2 of the Auction Rules, auctions are aimed to select projects for the construction of new RES objects. In this regard, the investor who started construction and installation works for the construction of the RES object has the right to participate in the auction.
In accordance with subparagraph 2) of paragraph 16 of the Rules for the centralized purchase and sale of electric energy produced by RES objects, the applicant shall, within 36 (thirty six) months from the date of signing the PPA, provide a copy of the RES object acceptance certificate approved in the FSC accordance with the legislation of the Republic of Kazakhstan in the sphere of architectural, town-planning and construction activities.
According to subparagraph 2) of paragraph 101 of the Rules for the centralized purchase and sale of electricity generated by renewable energy objects with the failure to provide a copy of the RES object acceptance certificate, the financial security is retained in the amount of 100% of the performance bond, part of the performance, if the copy of the notice of the beginning of the construction and installation works is not provided within 12 months from the date of signing PPA 70% of the amount of performance bond is held.
In accordance with subparagraph 2 of paragraph 44 of the Auction Rules, the bid bond, paid by the winner of the auction in the form of a bank guarantee or a standby letter of credit, is returned within 3 (three) business days from the date the participant submits a written appeal to the financial settlement center.
Legislation does not provide for a gradual release of financial security.
In case of violation of the deadline for the provision of a copy of the acceptance certificate for the operation of the facility for the use of renewable energy sources, the power purchase agreement shall cease to be effective, while the performance bond remains in favor of Financial Settlement Center.
Auction rules stipulate the holding of auction auctions separately for low-capacity projects (from 0.1 to 10 MW (for wind farms from 0.75 MW) and large projects (over 10 MW).
If auction bidding for 50 MW was announced for low-power projects, then the maximum capacity of a single project can be no more than 10 MW inclusive.
If auction bidding is announced for major projects, then projects with an installed capacity of 10 to 50 MW can participate in this category.
During the auction, participants see only the minimum bid price. At their discretion, bidders may change their bid and submit a lower price, while the volume of the previously filed application is not subject to change, the price in the new application may be indicated lower than in the previous one.
In accordance with paragraph 55 of the Auction Rules, the following condition is provided if the last demanded application for participation in the auction from the preliminary list of winners can not be fully satisfied with the available demand, then the following conditions apply when bidding:
1) if the satisfied volume of the last requested application for participation in the auction is 50% or more of its declared volume, then such an application for participation in the auction is satisfied on the basis of the results of trading in full. At the same time, the volume of selection of the installed capacity announced by the authorized body will be increased by the amount of the unsatisfied balance of the last requested application for participation in the auction from the ranked list;
2) if the satisfied volume of the last requested application for participation in the auction is less than 50% of its declared volume, then such an application for participation in the auction is not met at the end of the bidding in full. At the same time, the declared capacity of the selected capacity will be reduced by the amount of the satisfied volume of the last requested application for participation in the auction from the ranked list.
In the example you suggested, the satisfied volume of the last claimed demand is 20 MW, i.е. more than 50% of its declared volume (25 MW), such an application on the basis of the auction results will be satisfied in full. Following the auction, the two winners will be selected, first - 30 MW, the second - 25 MW, while the selected capacity will be increased to 55 MW instead of the planned 50 MW.
In the event that there are fewer than three participants during the auction for the selection of renewable energy projects, the auction will be deemed to have failed. Registration fees paid to KOREM JSC will be refunded.
In accordance with paragraph 16 of the Rules for the Determination of Fixed Tariffs and Auction Prices, the auction ceiling prices for subsequent auctions are determined based on the results of previous auctions at the maximum price of the winner, while at auctions in 2018, the auction ceiling prices will be at the feed-in tariff level.
Observers are persons appointed by the authorized body to monitor the course of auctions. Presumably, these persons will be representatives of the Ministries, various non-profit associations in the energy sector and the NCE’s). The observers cannot be auction participants; participants must be in their seats and participate in the trading session online.
It is true that there were no free land plots and connection points for these auctions, which means that only the Applicants who already have land plots and connection points participate in these auctions.
Yes, the auction will be conducted online via the Internet. Therefore, you can participate in the auction from anywhere in the world, where there is an access to the Internet.
Yes, in case the volume of the auctioned installed capacity of 10 MW is put up for auction, then a project with an installed capacity of up to 10 MW can win the auction. The PPA with FSC is signed for capacity specified in the register of winners.
Yes, if a participant wins both auctions, then two PPA’s with FSC will be concluded with one legal entity, at two different prices for two separate RES objects.
According to subparagraph 2) of paragraph 1 of Article 9 of the Law of the Republic of Kazakhstan "On Support of the Use of Renewable Energy Sources", an energy producing organization using renewable energy sources has the right, at its discretion, to sell electricity produced to consumers at contract prices in accordance with bilateral agreements concluded in accordance with the legislation of the Republic Kazakhstan on the electric power industry.
In accordance with paragraph 7 of Article 9 of the Law of the Republic of Kazakhstan "On Support of the Use of Renewable Energy Sources", energy producing organizations that use renewable energy sources are exempted from the payment for services provided by energy transmission organizations for the transmission of electric energy.
For the participation of a foreign investor in auction trading, the establishment of a branch in Kazakhstan is not necessary.
According to Article 43 of the Civil Code of the Republic of Kazakhstan, branches and representative offices are not legal entities. A branch is a separate subdivision of a legal entity located outside its location and carrying out all or part of its functions, including functions of representation.
Thus, if a foreign investor is recognized as an auction winner, he can open a branch of a legal entity that won the auction, after recognizing it as the winner and carry out all necessary actions, including the implementation of the project through the branch.
When obtaining technical specifications for grid connection, there are certain requirements for the equipment, that is, how it should behave when the frequency falls, how the reactive power will be provided, etc., which must be observed when obtaining technical specifications.
No, there is no need in digital signature to participate in the auction.
Yes, you can apply for 50 MW. Subparagraph 1 of paragraph 29 provides that participants can submit an application for participation in the auction bidding with an indication of the volume not exceeding the amount of installed capacity put up for auction by the authorized body.
Foreign investors can take part in the auction on general terms. To register in the auction, Kazakhstani investors must submit the following documents in accordance with paragraph 19 of the Auction Rules: 1) a copy of the Charter; 2) a copy of the certificate of state registration / re-registration of a legal entity; 3) a copy of the decision of the relevant body of the legal entity on the appointment of the first director; 4) power of attorney for a representative (in the event that the representation of interests is not exercised by the first director); 5) information about the details of the legal entity (bank details, address, contact numbers, e-mail). Foreign legal entities provide similar documents in accordance with the laws of the country in which they are registered with a mandatory attachment to each document of translation of the document into the state and Russian languages, the fidelity of which is attested notarially.
Yes, the Auction Rules guarantee participation in auction bids for the selection of renewable energy projects on equal terms for all investors, both foreign and Kazakhstani.
The requirement for a feasibility study for the project is not provided in the Auction Rules. Accordingly, you can participate in the auction without a feasibility study.
The technical requirements for the equipment of RES objects are reflected in the Rules for the Technical Operation of Electric Power Stations and Networks and the Electricity Network Rules.
Yes you are right. For some auctions, there are no free land plots and connection points, we believe that investors will participate in these auctions with well-designed projects in terms of the availability of land plots and the point of connection to the power grid.
30 MW - the total amount of purchased installed capacity for all projects for the auction. If the auction schedule is indicated that an auction is being held for small renewable energy projects, then auction participants can apply from 0.1 megawatts to 10 megawatts (inclusive). Therefore, the deployment of a 30 MW renewable energy project on a designated land plot was not originally intended. Several stations with the capacity required for small RES projects can be located on the allocated land plot. When announcing an auction of 30 MW in the example under consideration, a land plot is provided for placing RES facilities with a total capacity of about 20 MW. But you need to understand that investors can be announced at this auction, which have developed projects with resolved issues on land participants and connection points and they will also fight for the right to build RES facilities in this auction. It is these two groups of potential investors that ultimately will compete with each other for 30 MW of the total amount of purchased installed capacity for the auction in question.
No, electronic digital signature is not required for bidding.
According the technical conditions participant is allowed to participate in auction even he has formalized land plot and electric grid connection point. Advantage of participant who has land plot and connection point will not be taken into account. According to subparagraph 3) of paragraph 18 of Auction Rules, Auctioneer provides participants with equal conditions for access to auction. Selection of renewable energy projects is carried out at the lowest price.
According to the information provided by the energy transmission organizations, free connection points are included in the auction schedule. At the same time, in accordance with paragraph 6 of the Auction Rules, the points of connection to the electric grid submitted by energy transmission organizations to the authorized body are reserved for planned RES objects until the winner of the auction concludes an agreement on connecting of RES object and (or) the issuance of technical conditions for connection to the electric grid.
Based on the auction results, the winners apply to the local executive body of the oblasts (districts) that have reserved the land plot and execute it in accordance with the Land Code of the Republic of Kazakhstan, it requires the passage of all procedures stipulated by the legislation of the Republic of Kazakhstan.
Based on the results of the auction, the winners apply to the local executive body of the regions (districts) that have reserved the land plot and execute it in accordance with the Land Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan "On state registration of non-immovable property rights"
Financial security is provided in tenge, the procedure for obtaining financial security is worked out with the Banks in the process of negotiations between the Banks and clients independently.
The current Auction Rules imply the provision of financial security in the form of bank guarantees or a standby letter of credit. The first auction will be conducted using the tools provided by the Auction Rules.
In accordance with subparagraph 2) of paragraph 2 of the Auction Rules, auctions are aimed to select projects for the construction of new RES objects. In this regard, the investor who started construction and installation works for the construction of the RES object has the right to participate in the auction.
In accordance with subparagraph 2) of paragraph 16 of the Rules for the centralized purchase and sale of electric energy produced by RES objects, the applicant shall, within 36 (thirty six) months from the date of signing the PPA, provide a copy of the RES object acceptance certificate approved in the FSC accordance with the legislation of the Republic of Kazakhstan in the sphere of architectural, town-planning and construction activities.
According to subparagraph 2) of paragraph 101 of the Rules for the centralized purchase and sale of electricity generated by renewable energy objects with the failure to provide a copy of the RES object acceptance certificate, the financial security is retained in the amount of 100% of the performance bond, part of the performance, if the copy of the notice of the beginning of the construction and installation works is not provided within 12 months from the date of signing PPA 70% of the amount of performance bond is held.
In accordance with subparagraph 2 of paragraph 44 of the Auction Rules, the bid bond, paid by the winner of the auction in the form of a bank guarantee or a standby letter of credit, is returned within 3 (three) business days from the date the participant submits a written appeal to the financial settlement center.
Legislation does not provide for a gradual release of financial security.
In case of violation of the deadline for the provision of a copy of the acceptance certificate for the operation of the facility for the use of renewable energy sources, the power purchase agreement shall cease to be effective, while the performance bond remains in favor of Financial Settlement Center.
Auction rules stipulate the holding of auction auctions separately for low-capacity projects (from 0.1 to 10 MW (for wind farms from 0.75 MW) and large projects (over 10 MW).
If auction bidding for 50 MW was announced for low-power projects, then the maximum capacity of a single project can be no more than 10 MW inclusive.
If auction bidding is announced for major projects, then projects with an installed capacity of 10 to 50 MW can participate in this category.
During the auction, participants see only the minimum bid price. At their discretion, bidders may change their bid and submit a lower price, while the volume of the previously filed application is not subject to change, the price in the new application may be indicated lower than in the previous one.
In accordance with paragraph 55 of the Auction Rules, the following condition is provided if the last demanded application for participation in the auction from the preliminary list of winners can not be fully satisfied with the available demand, then the following conditions apply when bidding:
1) if the satisfied volume of the last requested application for participation in the auction is 50% or more of its declared volume, then such an application for participation in the auction is satisfied on the basis of the results of trading in full. At the same time, the volume of selection of the installed capacity announced by the authorized body will be increased by the amount of the unsatisfied balance of the last requested application for participation in the auction from the ranked list;
2) if the satisfied volume of the last requested application for participation in the auction is less than 50% of its declared volume, then such an application for participation in the auction is not met at the end of the bidding in full. At the same time, the declared capacity of the selected capacity will be reduced by the amount of the satisfied volume of the last requested application for participation in the auction from the ranked list.
In the example you suggested, the satisfied volume of the last claimed demand is 20 MW, i.е. more than 50% of its declared volume (25 MW), such an application on the basis of the auction results will be satisfied in full. Following the auction, the two winners will be selected, first - 30 MW, the second - 25 MW, while the selected capacity will be increased to 55 MW instead of the planned 50 MW.
In the event that there are fewer than three participants during the auction for the selection of renewable energy projects, the auction will be deemed to have failed. Registration fees paid to KOREM JSC will be refunded
In accordance with paragraph 16 of the Rules for the Determination of Fixed Tariffs and Auction Prices, the auction ceiling prices for subsequent auctions are determined based on the results of previous auctions at the maximum price of the winner, while at auctions in 2018, the auction ceiling prices will be at the feed-in tariff level.
Observers are persons appointed by the authorized body to monitor the course of auctions. Presumably, these persons will be representatives of the Ministries, various non-profit associations in the energy sector and the NCE’s). The observers cannot be auction participants; participants must be in their seats and participate in the trading session online.
It is true that there were no free land plots and connection points for these auctions, which means that only the Applicants who already have land plots and connection points participate in these auctions.
Yes, the auction will be conducted online via the Internet. Therefore, you can participate in the auction from anywhere in the world, where there is an access to the Internet.
Yes, in case the volume of the auctioned installed capacity of 10 MW is put up for auction, then a project with an installed capacity of up to 10 MW can win the auction. The PPA with FSC is signed for capacity specified in the register of winners.
Yes, if a participant wins both auctions, then two PPA’s with FSC will be concluded with one legal entity, at two different prices for two separate RES objects.
According to subparagraph 2) of paragraph 1 of Article 9 of the Law of the Republic of Kazakhstan "On Support of the Use of Renewable Energy Sources", an energy producing organization using renewable energy sources has the right, at its discretion, to sell electricity produced to consumers at contract prices in accordance with bilateral agreements concluded in accordance with the legislation of the Republic Kazakhstan on the electric power industry.
In accordance with paragraph 7 of Article 9 of the Law of the Republic of Kazakhstan "On Support of the Use of Renewable Energy Sources", energy producing organizations that use renewable energy sources are exempted from the payment for services provided by energy transmission organizations for the transmission of electric energy.
For the participation of a foreign investor in auction trading, the establishment of a branch in Kazakhstan is not necessary.
According to Article 43 of the Civil Code of the Republic of Kazakhstan, branches and representative offices are not legal entities. A branch is a separate subdivision of a legal entity located outside its location and carrying out all or part of its functions, including functions of representation.
Thus, if a foreign investor is recognized as an auction winner, he can open a branch of a legal entity that won the auction, after recognizing it as the winner and carry out all necessary actions, including the implementation of the project through the branch.
When obtaining technical specifications for grid connection, there are certain requirements for the equipment, that is, how it should behave when the frequency falls, how the reactive power will be provided, etc., which must be observed when obtaining technical specifications.
No, there is no need in digital signature to participate in the auction.
Yes, you can apply for 50 MW. Subparagraph 1 of paragraph 29 provides that participants can submit an application for participation in the auction bidding with an indication of the volume not exceeding the amount of installed capacity put up for auction by the authorized body.
Foreign investors can take part in the auction on general terms. To register in the auction, Kazakhstani investors must submit the following documents in accordance with paragraph 19 of the Auction Rules: 1) a copy of the Charter; 2) a copy of the certificate of state registration / re-registration of a legal entity; 3) a copy of the decision of the relevant body of the legal entity on the appointment of the first director; 4) power of attorney for a representative (in the event that the representation of interests is not exercised by the first director); 5) information about the details of the legal entity (bank details, address, contact numbers, e-mail). Foreign legal entities provide similar documents in accordance with the laws of the country in which they are registered with a mandatory attachment to each document of translation of the document into the state and Russian languages, the fidelity of which is attested notarially.
Yes, the Auction Rules guarantee participation in auction bids for the selection of renewable energy projects on equal terms for all investors, both foreign and Kazakhstani.
The requirement for a feasibility study for the project is not provided in the Auction Rules. Accordingly, you can participate in the auction without a feasibility study.
The technical requirements for the equipment of RES objects are reflected in the Rules for the Technical Operation of Electric Power Stations and Networks and the Electricity Network Rules.
Yes you are right. For some auctions, there are no free land plots and connection points, we believe that investors will participate in these auctions with well-designed projects in terms of the availability of land plots and the point of connection to the power grid.
30 MW - the total amount of purchased installed capacity for all projects for the auction. If the auction schedule is indicated that an auction is being held for small renewable energy projects, then auction participants can apply from 0.1 megawatts to 10 megawatts (inclusive). Therefore, the deployment of a 30 MW renewable energy project on a designated land plot was not originally intended. Several stations with the capacity required for small RES projects can be located on the allocated land plot. When announcing an auction of 30 MW in the example under consideration, a land plot is provided for placing RES facilities with a total capacity of about 20 MW. But you need to understand that investors can be announced at this auction, which have developed projects with resolved issues on land participants and connection points and they will also fight for the right to build RES facilities in this auction. It is these two groups of potential investors that ultimately will compete with each other for 30 MW of the total amount of purchased installed capacity for the auction in question.
No, electronic digital signature is not required for bidding.

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